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Tag: Marc Benioff

  • Salesforce Announces Einstein GPT, a ChatGPT-Powered Einstein AI

    Salesforce Announces Einstein GPT, a ChatGPT-Powered Einstein AI

    Salesforce has announced Einstein GPT a major upgrade to its Einstein AI that uses OpenAI’s ChatGPT to improve its abilities.

    On the heels of an announcement by Microsoft that it was releasing Dynamics 365, the world’s first ERP/CRM copilot, Salesforce has fired back with Einstein GPT. The company describes it as “the world’s first generative AI CRM technology, which delivers AI-created content across every sales, service, marketing, commerce, and IT interaction, at hyperscale.”

    Salesforce says Einstein GPT will help transform the entire customer experience, thanks to generative AI.

    Einstein GPT will infuse Salesforce’s proprietary AI models with generative AI technology from an ecosystem of partners and real-time data from the Salesforce Data Cloud, which ingests, harmonizes, and unifies all of a company’s customer data. With Einstein GPT, customers can then connect that data to OpenAI’s advanced AI models out of the box, or choose their own external model and use natural-language prompts directly within their Salesforce CRM to generate content that continuously adapts to changing customer information and needs in real time.

    “The world is experiencing one of the most profound technological shifts with the rise of real-time technologies and generative AI. This comes at a pivotal moment as every company is focused on connecting with their customers in more intelligent, automated, and personalized ways,” said Marc Benioff, CEO of Salesforce. “Einstein GPT, in combination with our Data Cloud and integrated in all of our clouds as well as Tableau, MuleSoft, and Slack, is another way we are opening the door to the AI future for all our customers, and we’ll be integrating with OpenAI at launch.”

    Sales personnel will be able to use Einstein GPT to generate personalized emails to customers, while service personnel will be able to use the tech to generate articles based on case notes, as well as auto-generate personalized interaction with customers.

    Slack will also see Einstein GTP integration, giving users the ability to see in-depth insights.

    Marketing personnel will be able to use Einstein GPT to generate personalized content and engage with customers across mobile, email, web, and advertising.

    Even developers can get in on the action, using the technology to help generate code.

    “We’re excited to apply the power of OpenAI’s technology to CRM,” said Sam Altman, CEO of OpenAI. “This will allow more people to benefit from this technology, and it allows us to learn more about real-world usage, which is critical to the responsible development and deployment of AI — a belief that Salesforce shares with us.”

    https://youtu.be/YAsKRxXdyj0
  • Marc Benioff Thinks More Tech CEOs Will Copy Elon Musk

    Marc Benioff Thinks More Tech CEOs Will Copy Elon Musk

    Salesforce CEO Marc Benioff has some good — or bad — news, depending on whether or not you’re a fan of Elon Musk.

    Elon Musk may be the world’s richest man, but he certainly didn’t get there by winning any popularity contests. What popularity he did have has taken a major hit since his Twitter acquisition. The mercurial CEO has slashed the workforce, axed his most loyal executives, made demands of staff that many consider unreasonable, introduced drastic changes seemingly on a whim, and raised prices or begun charging for various services.

    While Musk’s management style has put many off, Benioff believes it may become far more common, with many tech CEOs already asking if they need to follow his example.

    “Every CEO in Silicon Valley has looked at what Elon Musk has done and has asked themselves, ‘Do they need to unleash their own Elon within them?’” Benioff told Business Insider in an interview.

    “That is an existential question that if you are any kind of executive in the company,” Benioff added. “You have to look at him and say, ‘Wow, it’s a very unorthodox management style,’ but, as I’ve said, you can’t underestimate what he’s done.”

    While Benioff has not taken such drastic measures as Musk, he did say that he had to step back into more of a hands-on role following the departure of co-CEO Bret Taylor. The company’s recent layoffs and cost-cutting measures reflect that involvement.

    “I had no choice but to step in and to guide the company’s performance,” Benioff told Insider. “And that’s the results that you’re seeing here today with these numbers.”

    While there’s no denying Musk’s approach may meet with a measure of success, it’s hard to imagine it as a sustainable business model. After all, at some point, every CEO still need employees that are willing to work for them.

  • Salesforce Bows to Investor Pressure, Appoints New Board Members

    Salesforce Bows to Investor Pressure, Appoints New Board Members

    Salesforce is bowing to investor pressure, appointing new board members shortly after activist investor Elliott Management invested in the company.

    Sales announced it had appointed three independent board members late last week “as part of its ongoing board refreshment process.” The new board appointments go into effect March 1, 2023.

    The new board members are:

    • Arnold Donald, former President and Chief Executive Officer of Carnival Corporation & plc;
    • Sachin Mehra, Chief Financial Officer of Mastercard; and
    • Mason Morfit, Chief Executive Officer and Chief Investment Officer of ValueAct Capital

    “We’re excited to welcome Arnold, Sachin and Mason to the Salesforce Board,” said Marc Benioff, Chair and CEO of Salesforce. “As highly respected business leaders, they each bring valuable experience to further enhance and balance the diverse skills on the Board and advance our value creation initiatives. We look forward to benefiting from their expertise and insights as Salesforce continues to drive durable top- and bottom-line growth and build on our position as the world’s #1 CRM.”

    “The addition of these three new independent directors to our Board demonstrates Salesforce’s commitment to ongoing refreshment in action,” said Robin Washington, Lead Independent Director of the Board. “Arnold’s proven cross-industry leadership experience, Sachin’s expansive financial, technology and operational expertise and Mason’s investor perspective and record of helping public companies build sustainable, long-term value will further strengthen our Board’s depth of expertise and diversity of thought. Ensuring we have the right Board in place to guide the Company’s strategy and oversee its ambitious goals continues to be a top priority. Over the past year, we have benefited from the valuable input of our investors and look forward to continuing that dialogue as we drive value for Salesforce shareholders.”

    Salesforce’s decision to appoint additional board members is likely in response to Elliott’s multibillion-dollar investment in the company, and may be an effort to avoid an all-out proxy fight. Elliott has a long history of heavily investing in companies and then aggressively pushing for executive and board changes.

    According to The Wall Street Journal, that appears to be exactly what Elliott is doing with Salesforce, with the investment firm preparing to nominate its own slate of directors.

    “Salesforce is one of the pre-eminent software companies in the world, and having followed the company for nearly two decades, we have developed a deep respect for [Co-Chief Executive] Marc Benioff and what he has built,” said Jesse Cohn, managing partner at Elliott, at the time of investment.

    “We look forward to working constructively with Salesforce to realize the value befitting a company of its stature,” added Cohn.

    Elliott’s involvement comes at a difficult time for Salesforce. The company has seen the departure of some of its top executives in recent weeks, as well as layoffs that have impacted roughly 10% of its employees.

  • Salesforce Is Laying Off 10% of Its Workforce

    Salesforce Is Laying Off 10% of Its Workforce

    Salesforce has become one of the first major companies to announce layoffs in the new year, with plans to cut 10% of its workforce.

    Layoffs became a major fixture of the tech industry during the latter half of 2022, with tens of thousands of workers laid off. Salesforce has rung in the new year by informing employees that 10% of them will be let go.

    The layoffs mark the latest in a string of setbacks the company has experienced, including the loss of co-CEO Bret Taylor and Slack CEO Stewart Butterfield.

    A copy of CEO Marc Benioff’s email to employees was filed with the Securities and Exchange Commission:

    Date: January 4, 2023 Subject: Important Company Update

    As one ‘Ohana, over the last 23 years, Salesforce has built the #1 CRM that drives incredible customer success across every line of business for every industry around the world. We have never been more mission-critical to our customers. We have an unparalleled ecosystem, with thousands of partners and millions of Trailblazers building their companies on our platform.

    However, the environment remains challenging and our customers are taking a more measured approach to their purchasing decisions. With this in mind, we’ve made the very difficult decision to reduce our workforce by about 10 percent, mostly over the coming weeks.

    I’ve been thinking a lot about how we came to this moment. As our revenue accelerated through the pandemic, we hired too many people leading into this economic downturn we’re now facing, and I take responsibility for that.

    Within the next hour, employees who are initially affected by this decision will receive an email letting them know. Our leadership will reach out directly to these employees, and provide clarity for their teams about changes within their organizations.

    For those who will be leaving Salesforce, our priority is to fully support them, including by offering a generous package. In the U.S., affected employees will receive a minimum of nearly five months of pay, health insurance, career resources, and other benefits to help with their transition. Those outside the U.S. will receive a similar level of support, and our local processes will align with employment laws in each country.

    The employees being affected aren’t just colleagues. They’re friends. They’re family. Please reach out to them. Offer the compassion and love they and their families deserve and need now more than ever. And most of all, please lean on your leadership, including me, as we work through this difficult time together.

    I’m grateful for every single one of you who has contributed to our continued success as a company, and the hard work and sacrifices you have made to generate success for our hundreds of thousands of customers. You’ve built our company — for all of our stakeholders — and you’ve shown incredible resilience every step of the way.

    With gratitude, Marc

  • Marc Benioff Wants to Re-Recruit Departed Executives

    Marc Benioff Wants to Re-Recruit Departed Executives

    Marc Benioff has made clear he wants to re-recruit top executives that have departed Salesforce in recent weeks.

    Salesforce has had a rough few weeks, with co-CEO Bret Taylor and Slack CEO Stewart Butterfield leaving, among others. The departures have sparked speculation about what is happening behind the scenes.

    According to Business Insider, Salesforce CEO Marc Benioff attempted to put the issue to rest during a company all-hands call, making it clear he has no hard feelings about the execs’ departure and would like them back.

    “Some people come in, some people leave, it’s sad when they go, and it’s great when they come in — it’s a bigger story of life itself,” Benioff said. “I will support them when they are leaving and I will recruit them back.”

    Insider reports Benioff was surprised and disappointed with Taylor’s exit, in particular. Taylor was long-seen as Benioff’s heir-apparent.

    “Everyone deserves to be able to manifest and achieve their own self-actualization to live the life they want and do what makes you happiest, to do what makes you healthiest, to do what is necessary for you to have loving relationships with your family, your friends, to be successful with your work and have impact on the world,” Benioff added to employees. “If you can do that at Salesforce, we’re going to do everything we can to make that for you, and if you have to leave, we will support you, but we will recruit you back.”

  • Bret Taylor Stepping Down as Salesforce Co-CEO

    Bret Taylor Stepping Down as Salesforce Co-CEO

    For the second time in three years, a co-CEO is leaving Salesforce as Bret Taylor announces his departure from the role and the company.

    Bret Taylor joined Marc Benioff as co-CEO in late 2021, replacing Keith Block who resigned from the role in early 2020. Taylor was well-respected within the company and widely viewed as Marc Benioff’s heir-apparent. Despite holding the job for just one year, Taylor is stepping down and leaving the company, effective January 31, 2023.

    “I am grateful for six fantastic years at Salesforce,” said Taylor. “Marc was my mentor well before I joined Salesforce and the opportunity to partner with him to lead the most important software company in the world is career-defining. After a lot of reflection, I’ve decided to return to my entrepreneurial roots. Salesforce has never been more relevant to customers, and with its best-in-class management team and the company executing on all cylinders, now is the right time for me to step away.”

    “It’s bittersweet that Bret has decided to step down as my Co-CEO,” said Benioff. “He made his mark on Salesforce as an incredible technologist, leader and friend to us all. Bret founded two incredible companies so it’s understandable why he wants to return to his entrepreneurial roots. I’m excited to see his next chapter unfold, as I’ll always be his biggest champion and he’ll always be part of the Salesforce ‘Ohana.”

    According to CNBC, Taylor is stepping away to found a new company.

    “We have to let him be free, let him go, and I understand, but I don’t like it. And Bret, you know that you’re always going to be our brother. We love you deeply, you have a home here, we’re gonna try to get you back somehow. Don’t think you’re gonna somehow get out of this alive because you’re not,” Benioff told analysts.

    In the meantime, Benioff has made clear he has no intention of ever leaving the company.

  • Marc Benioff: ‘Office Mandates Are Never Going to Work’

    Marc Benioff: ‘Office Mandates Are Never Going to Work’

    Salesforce CEO Marc Benioff has weighed in on return-to-office mandates, proclaiming they “are never going to work.”

    Companies large and small are struggling to adapt to the workplace changes brought by the pandemic. Some have embraced remote and hybrid work, while others are insisting employees return to the office (RTO). Benioff has made no secret of his belief that remote and hybrid workflows are here to stay, and he reiterated that at a company event Thursday, according to AOL.

    “Office mandates are never going to work,” Benioff said.

    See also: Hybrid Work Disparity Is Fueling the Great Resignation

    Although many companies are working hard to return to the pre-pandemic status quo, the evidence has so far supported Benioff’s assertion. The more companies have demanded employees return to the office the more those employees have pushed back.

    Even high-profile companies like Apple and Google have not been immune, with both companies receiving significant pushback from their employees. In fact, Apple even lost its top AI executive over its RTO policies. Google has similarly had to push back RTO deadlines in response to employee demands.

    In contrast, Salesforce has focused on its “Success from Anywhere” approach, giving employees “the flexibility to work how, when, and where works best for them.” The company’s acquisition of Slack has dovetailed perfectly with its efforts, helping round out its suite of tools and services to enable remote and hybrid workflows.

  • Salesforce Faces Employee Revolt Over NRA Ties

    Salesforce Faces Employee Revolt Over NRA Ties

    Salesforce has a problem on its hands, with a growing number of employees expressing their disapproval of the company’s ties to the National Rifle Association (NRA).

    In the wake of multiple mass shootings, Salesforce employees are taking the company to task for having the NRA as a customer. According to Business Insider, some 4,000 employees have signed an open letter demanding the company sever ties.

    “It’s not in our power to get background checks or other gun control measures passed by Congress — but we can effect change by ending our commercial relationship with our customer, the National Rifle Association,” the Salesforce employees wrote in their letter.

    The employees are hoping to prevail on co-CEO Marc Benioff, who has expressed support for increased gun control in the past. The employees are concerned over the prospect of the NRA using the Salesforce platform for continued fundraising and marketing efforts.

    “It is unconscionable to consider their use of Marketing Cloud to capitalize on mass shootings,” the letter continued.

    It’s unclear if Salesforce’s leadership will follow through on the letter’s demands, but the situation illustrates the ethical challenges companies are increasingly facing as employee activism continues to grow.

  • Salesforce Reports “Phenomenal Quarter”

    Salesforce Reports “Phenomenal Quarter”

    Salesforce has reported its fourth-quarter results, beating analysts’ expectations on strong services.

    Salesforce has been at the forefront of the workplace transformation, purchasing Slack and going all-in on remote and hybrid work. The company is also working to help companies transition to the cloud, forming partnerships, and rolling out new tools to help companies and their employees.

    In its fourth quarter, the company reported $7.33 billion, up 26% year-over-year. Subscription and support revenue came in at $6.83 billion, up 25%, while professional services and other revenue increased 46%, coming in at $0.50 billion.

    For fiscal year 2022, revenue was up 25%, coming in at $26.49 billion. Subscriptions and support accounted for $24.66 billion, an increase of 23%, while professional services and other revenue came in at $1.84 billion, a 44% increase.

    “We had another phenomenal quarter and full-year of financial results,” said Marc Benioff, Chair and Co-CEO of Salesforce. “As we continue to see tremendous demand from customers, we’re raising our FY23 revenue guidance to $32.1 billion at the high-end of range, with non-GAAP operating margin of 20%, and operating cash flow growth of 22% year-over-year.”

    “With our customers’ success driving our financial success, we’re generating disciplined, profitable growth at scale quarter after quarter,” said Bret Taylor, Co-CEO of Salesforce. “Our Customer 360 platform has never been more strategic or relevant in driving the growth and resilience of our customers around the world.”

    Executives expressed confidence the company’s momentum will continue into 2023.

    “Fiscal 2022 was a remarkable year for Salesforce. I am particularly pleased with our focus on discipline and profitable growth which drove record levels of revenue, margin, and cash flow,” said Amy Weaver, President and CFO. “I’m confident in the momentum of the business as we build an even stronger company in FY23 and beyond.”

  • Salesforce Faces Employee Backlash Over NFT Plans

    Salesforce Faces Employee Backlash Over NFT Plans

    Salesforce employees are pushing back against the company’s plan to create an NFT platform.

    Salesforce announced in early February that it was working to develop its own NFT platform and NFT Cloud. Co-CEOs Marc Benioff and Bret Taylor told employees at an online event. NFTs have become increasingly popular, with some fetching millions of dollars.

    It seems Salesforce employees are not impressed with the plans, with hundreds of them signing an open letter of protest, according to Thompson Reuters Foundation News. The employees took multiple issues with the company’s plans, including the environmental impact of NFTs and their being “unregulated, highly speculative financial assets.”

    The environmental concerns are becoming a common refrain of critics of blockchain-based tech. Mozilla was forced to abandon plans to accept cryptocurrency donations over crypto’s environmental impact, and Wikipedia is under similar pressure.

    It remains to be seen if Salesforce will abandon its plans, or merely alter them to address employee concerns.

  • Salesforce Developing NFT Platform

    Salesforce Developing NFT Platform

    Salesforce is getting in on the NFT bandwagon, telling employees it is developing its own NFT platform.

    NFTs (non-fungible tokens) have taken the digital world by storm. Born out of the same blockchain that powers cryptocurrencies, NFTs are unique digital assets, such as digital art, that can be bought and sold. In fact, some NFTs have already fetched millions of dollars.

    Salesforce clearly sees the potential of NFTs, with co-CEOs Marc Benioff and Bret Taylor telling employees about the company’s plans to develop its NFT platform, according to CNBC. CNBC’s sources asked not to be named, since the event where the announcement was made was a private one. Similarly, Salesforce has not made an official statement regarding its plans.

    Nonetheless, as one of the leading cloud-based software providers, Salesforce embracing NFTs could help propel the tech even further into the mainstream.

  • Ford and Salesforce Partner on VIIZR, Small Business SaaS Tool

    Ford and Salesforce Partner on VIIZR, Small Business SaaS Tool

    Ford and Salesforce are partnering on VIIZR, a Software as a Service (SaaS) tool designed for small businesses.

    VIIZR is designed for small businesses, especially those whose workers operate in the field. Electricians, HVAC personnel, plumbers, and the like are ideal candidates, with VIIZR designed to help with scheduling, invoicing, and more.

    The tool is built on Salesforce Field Service, as well as Ford Pro, Ford’s commercial vehicle and service business. The two companies hope to take advantage of the field service management market, estimated to be worth $3 billion annually in the US alone. The market is projected to double in the next six years, potentially making the two companies’ collaboration a major payoff.

    “For more than 100 years, Ford has been the backbone of commercial business,” Ford CEO Jim Farley said. “Salesforce is the global leader in CRM and together, Ford is excited to bring advanced digital tools to the trades to help drive the productivity of their business.”

    “Small business owners are the foundation of our communities, and every day across America plumbers, electricians and landscapers step into their Ford vehicles to build our economy,” said Marc Benioff, chair and co-CEO of Salesforce. “We’re thrilled that our incredible new partnership with Ford will help energize millions of entrepreneurs in the trades with the power of Salesforce so they can deliver for their customers and take their businesses to the next level.”

  • Despite a New Co-CEO, Marc Benioff Say’s He’s ‘Never Leaving Salesforce’

    Despite a New Co-CEO, Marc Benioff Say’s He’s ‘Never Leaving Salesforce’

    Salesforce once again has co-CEOs, but that doesn’t mean longtime CEO Marc Benioff plans to retire anytime soon…or ever.

    Salesforce is one of the few big tech companies to rely on co-CEOs, rather than a single person at the top spot. While Benioff has held the top position for years, the last co-CEO was Keith Block, who resigned in February 2020.

    Bret Taylor was recently appointed to join Benioff as co-CEO, even being seen as Benioff’s heir-apparent. Despite the perception, Benioff has set the record straight that he has no intention of leaving the company he founded.

    “I love Salesforce. You see me with our customers and how much fun I have with all of our stakeholders. I’m never leaving Salesforce. This is my life’s pursuit,” Benioff told Mad Money’s Jim Cramer.

    “But I couldn’t be more thrilled to have a great partner here with Bret Taylor, and he’s just amazing,” Benioff continued. “This is my dream, that Bret would come in the company and we could work it and run it together and lead it together in a trusted partnership, and that’s happening.”

  • Slack All-In on Remote Work, Tells Execs to Limit In-Office Time

    Slack All-In on Remote Work, Tells Execs to Limit In-Office Time

    Slack is going all-in on remote work, wanting its executives to lead by example by limiting the amount of time they spend in the office.

    Few companies have benefited from the global pandemic, and ensuing shift to remote work, as Slack. The company’s corporate messaging platform quickly became a staple of teams looking to stay connected and productive, despite the physical distance.

    After Salesforce purchased Slack, the companies began to emphasize a “digital-first” approach. Salesforce CEO Marc Benioff recently saidemployees “can do their job at home, they can be successful from anywhere,” and said Salesforce was helping customers achieve that.

    In an effort to make sure its executives lead by example, Slack CEO Stewart Butterfield told CNN that executives are being encouraged to spend no more than three days a week in the office.

    Executives will lead by example. There won’t be any dedicated executive floors in any of our offices, and executives will focus their office time on team events and customer interaction. Our guidance to leaders is to spend fewer than three days per week in the office.

    Butterfield framed the policy as part of a goal to build a better workplace.

    This is no time for retreat to the comfort of well-worn habits, or meager attempts to accommodate a restive workforce. This is a time for business leaders to build a better workplace and world.

    Many companies have made remote and hybrid work a permanent policy, after the pandemic demonstrated that employees can be productive while working remotely. Few, however, have gone as far as Slack in encouraging the adoption of the new paradigm.

    Butterfield acknowledged there would be challenges along the way, but expressed confidence it would pay off.

    Embracing this digital-first shift won’t happen overnight. But if we’re flexible while we learn, experiment and evolve, we’ll make work simpler, more pleasant and more productive.

  • Salesforce COO Bret Taylor a Rising Star, In Increasing Demand

    Salesforce COO Bret Taylor a Rising Star, In Increasing Demand

    There appears to be a leadership shift in play at Salesforce, with COO Bret Taylor increasingly in demand among the company’s customers.

    CEO Marc Benioff has been the face of the company since he founded it in 1999. According to Business Insider, however, customers are increasingly asking for COO Bret Taylor when discussing business.

    The move is seen as an indication that Taylor is viewed as heir-apparent for the top job at Salesforce, once Benioff retires.

    “I’ve seen a lot of cases where Bret is just becoming more and more in demand with the sales leaders, where they want him,” said Kevin Gibbs, the head of Salesforce Mobile, in a Business Insider interview arranged by Salesforce. “They want him to talk to the CEO, to talk to the leader of those companies, over all the other leaders inside the company over the past five years.”

  • Salesforce Economy to Create 9.3 Million Jobs, $1.6 Trillion in Revenue by 2026

    Salesforce Economy to Create 9.3 Million Jobs, $1.6 Trillion in Revenue by 2026

    A new report is demonstrating the breadth of the current digital transformation, claiming the Salesforce economy will create 9.3 million jobs and $1.6 trillion in revenue in the next five years.

    Salesforce is the leading CRM provider in the world, and recently acquired Slack, one of the leading corporate messaging platforms. Salesforce has gone all-in on the hybrid/remote workplace, and aims to be the “digital HQ” for its customers. CEO Marc Benioff is a firm believer that employees “can be successful from anywhere,” and Salesforce is aggressively positioning itself as the company that can make that happen.

    A new study by IDC, shows Salesforce is doing something right, as the company and its ecosystem partners “will create 9.3 million new jobs and $1.6 trillion in new business revenues worldwide by 2026.” Equally impressive, for every $1 Salesforce makes, its partner ecosystem will make $6.19.

    The company attributed its “digital HQ” strategy as a key to IDC’s findings. IDC predicts that cloud-related tech will make up 27% of digital transformation IT spending in 2022, and grow to 37% in 2026. This trend is being driven by the remote work transition initially sparked by the COVID-19 pandemic, and Salesforce is helping its customers make that transition smoother.

    In fact, IDC found that Salesforce solutions had helped 47% of customer respondents expand their workforce to include more suburban and rural areas. In addition, 38% were able to expand their workforce into new demographics, such as stay-at-home parents who would otherwise not be able join the workforce, and 36% are able to support more flexible work environments.

    “The Salesforce partner ecosystem extends the power of Salesforce to companies of all sizes, across industries and helps make customer success possible,” said Tyler Prince, EVP, Alliances & Channels, Salesforce. “As Salesforce grows, so do our partners — and we are committed to providing our expanding partner ecosystem with the tools needed to succeed in the jobs of the future.”

  • Marc Benioff: Employees ‘Can Be Successful From Anywhere’

    Marc Benioff: Employees ‘Can Be Successful From Anywhere’

    Marc Benioff: Employees ‘Can Be Successful From Anywhere’

    Mad Money’s Jim Cramer interviewed Salesforce CEO Marc Benioff about the surge in Delta cases and whether people would return to the office.

    Benioff compared pandemic response in San Francisco and Geneva, saying it felt like A Tale of Two Cities. Whereas there are a number of restrictions in place in San Francisco, when he traveled to Geneva a day later there were no restrictions, with in-person meetings and far less concern over the COVID variant.

    Nonetheless, Benioff expressed his belief the pandemic has fundamentally changed the new normal for the workforce.

    “The phenomenon that I see happening globally, is not as many employees are coming back into their offices globally as any CEO expected,” Benioff said. “And you’re really starting to see some very low attendance numbers in offices because employees are so productive at home.

    “So they can do their job at home, they can be successful from anywhere. The companies and our customers are successful. It’s incredible, but the way they’re being successful has completely changed.

    “The pandemic is A Tale of Two Cities, but the new normal is not. We’re starting to see this new normal appear, and business is going to be quite different as we come into this new world.”

  • The Deal Is Done: Slack Is Officially Part of Salesforce

    The Deal Is Done: Slack Is Officially Part of Salesforce

    Salesforce has completed its $27.7 billion acquisition of Slack, combining the leading CRM platform with one of the leading messaging platforms.

    The two companies announced in December they had reached a deal for Salesforce to acquire Slack. The deal was seen as a way for both companies to better compete with Microsoft. Microsoft Teams had eclipsed Slack, in terms of user count, thanks in large part to being part of Microsoft 365. Similarly, Microsoft has made it a goal to topple Salesforce as the leading CRM provider.

    The deal underwent additional scrutiny by the DOJ before receiving regulatory approval, paving the way for the deal to close.

    Executives from both companies highlighted their intent to create a “digital HQ,” to serve as a way for companies to reinvent their productivity.

    “We couldn’t be more excited to have Slack as part of the Salesforce family, combining the #1 CRM and the trailblazing digital platform for the work anywhere world,” said Marc Benioff, Chair and CEO of Salesforce. “Together we’ll define the future of enterprise software, creating the digital HQ that enables every organization to deliver customer and employee success from anywhere.”

    “We have a once-in-a-generation opportunity to rethink and reshape how and where we work,” said Stewart Butterfield, Slack CEO and Co-Founder. “Salesforce and Slack are uniquely positioned to lead this historic shift to a digital-first world. I could not be more excited for what’s to come.”

    The deal was welcomed by other companies as well.

    “We are obsessed with continually delighting our clients, and offering them the best experience and value across every interaction,” said Arvind Krishna, Chairman and CEO of IBM. “Salesforce and Slack coming together will help us become more connected, more productive, and more innovative so we can better serve our clients.”

  • Salesforce Reworking Operations to be Slack-First

    Salesforce Reworking Operations to be Slack-First

    Salesforce is doubling down on its Slack acquisition, reworking its entire operations to be Slack-first.

    Salesforce rocked the market when it announced it was purchasing Slack late last year. The move was seen as a way for both companies to better compete and fend off the pressure they were experiencing from Microsoft. In many ways, the Slack acquisition fits in with Salesforce’s overall approach, as it has been one of the biggest proponents of a permanent, flexible workflow post-pandemic.

    CEO Mac Benioff emphasized Slack’s role in that future in an interview on Yahoo! Finance Live:

    “We’re going to rebuild all of our technology, once again, to become Slack-first to help our customers have a harness to work in this new world — where you’re working at home; you’re working in the office; you’re working at events; you’re working anywhere.”

    As the Motley Fool notes, the acquisition is not yet complete, but expected to close sometime in Q2. Similarly, Benioff doesn’t talk about how much the reworking of Salesforce operations will cost, but the company has done well in its latest quarterly reports, clearly benefiting from the overall transition to the cloud.

  • Salesforce and Sean Combs Team Up on Marketplace for Black-Owned Businesses

    Salesforce and Sean Combs Team Up on Marketplace for Black-Owned Businesses

    Salesforce and Sean Combs are working together on SHOP CIRCULATE, a digital marketplace for Black-owned businesses.

    The collaboration comes just after the 100-year anniversary of the Tulsa Race Massacre. The initiative is designed to bring attention to Black-owned businesses and help them reach a wider audience and, at the same time, build wealth within the Black community

    “Building Black wealth starts with investing in Black-owned businesses and giving entrepreneurs access to the consumers needed to build sustainable companies that can thrive,” says Sean Combs, Chairman of Combs Enterprises. “I’m excited to partner with Salesforce to create a platform that will advance our collective pursuit of economic justice.”

    “Salesforce is honored to collaborate with Sean Combs and Combs Enterprises to help close the unjust wealth gap that prevents too many Black Americans from achieving economic equality,” said Marc Benioff, Chair and CEO of Salesforce. “SHOP CIRCULATE will empower us all — as individuals, communities and companies — to support Black-owned businesses, amplify the talent of Black entrepreneurs and move us closer to true equality.”

    The new platform will be built by Deloitte Digital, a leading Salesforce partner, and powered by Marketplacer’s technology.

    “Deloitte’s purpose is to make an impact that matters. As the largest professional services organization in the world, we have a responsibility to help level the playing field and advance opportunities for the Black community in business,” says Punit Renjen, Deloitte Global CEO. “This is one of the most effective ways for organizations like ours to do our part in ending systemic bias, racial injustice, and unequal treatment in all its forms.”

    “Marketplaces are a great leveler in bringing together businesses of all sizes into a single venue to drive opportunity and growth. It’s our goal that our partnership with SHOP CIRCULATE will bring our powerful marketplace platform to Black-owned businesses and entrepreneurs as a vehicle to drive change, growth and success,” said Jason Wyatt, Executive Chairman, Marketplacer.

  • Salesforce Posts Record First Quarter

    Salesforce Posts Record First Quarter

    Salesforce has delivered its first quarter results, posting a record quarter on strong Customer 360 results.

    Salesforce posted $5.96 billion in revenue, a 23% increase year-over-year. Subscription and support revenue accounted for $5.54 billion of that, an increase of 21%, with the professional services and other revenue sources making up $0.43 billion, an increase of 47%.

    “We had the best first quarter in our company’s history,” said Marc Benioff, Chair & CEO, Salesforce. “We believe our Customer 360 platform is proving to be the most relevant technology for companies accelerating out of the pandemic. With incredible momentum throughout our core business, we’re raising our revenue guidance for this fiscal year by $250 million to approximately $26 billion and non-GAAP operating margin to 18 percent. We’re on our path to reach $50 billion in revenue in FY26.”

    “Our performance in the first quarter was strong across all financial metrics,” said Amy Weaver, President and Chief Financial Officer, Salesforce. “We saw record levels of new business and strength across all products, regions, and customer sizes. Our impressive start to this year helps fuel our momentum for the rest of the year as we keep pace toward our goal of $50 billion in revenue in FY26.”

    In addition to beating earnings estimates, Salesforce issued stronger guidance than analysts were expecting, predicting $0.91 to $0.92 per share for the second quarter, on $6.22 billion to $6.23 billion. In contrast, according to CNBC, analysts had been expecting $0.86 on $6.15 billion.